The Hot Spot Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

0
+
n.a.
n.a.
Investment required

?

$75,000 - $158,000
Revenue (AUV)

?

$400,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$37,500
Royalty fees

?

5.00%
+
1.00%
Operating Profit

?

20.4%

Pro
Franchisees

?

0
+
n.a.
n.a.
Investment required

?

$75,000 - $158,000
Franchise fee

?

$37,500
Royalty fees

?

5.00%
+
1.00%
Revenue (AUV)

?

$400,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

20.4%

Pro

The Hot Spot Studios: Sparking Creativity Through Community Art

The Hot Spot Studios is a vibrant "paint your own pottery" franchise that blends creativity, community, and entrepreneurship. Founded in 1996 by Olivia Parsons Franks, the concept began as a single studio on the West Coast.

In 2023, Franks partnered with Lorraine Kitsos to expand the brand through franchising. The franchise is now headquartered in Sparks, Nevada, with 13 studio locations across the U.S., including states like North Carolina, Texas, Nevada, and Michigan.

The Hot Spot Studios stands out by offering more than just pottery painting. Guests can also enjoy canvas painting, candle making, mosaics, succulent gardens, and slime crafting.

This diverse range of DIY projects makes the studio appealing to all age groups and skill levels. Unlike many competitors, The Hot Spot charges no studio or paint fees, and most items can be completed and taken home the same day.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $37,500
Your Training Expenses $2,000 - $5,000
Website Development $500
Premises deposit $2,000 - $7,000
Utilities deposits $100 - $400
Rent – three months $6,000 - $21,000
Design and Architect Fees $0 - $3,000
Leasehold Improvements, Construction and/or Remodeling $0 - $15,000
Furniture, Fixtures, & Equipment $5,000 - $18,000
Exterior Signage $2,000 - $6,000
Business Licenses and Permits $500 - $2,000
Computer Systems $1,200 - $2,400
Initial Inventory to Begin Operating $6,000 - $20,000
Professional Fees $2,000 - $4,000
Initial Launch Marketing & Grand Opening Advertising $1,500 - $2,500
Insurance $600 - $1,800
Operating Expenses / Additional Funds – three months $8,000 - $12,000
TOTAL $74,900 - $158,100

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

0

+
n.a.
n.a.
No growth
New

$37,500

$75,000

-

$158,000

n.a.

$400,000

Pro

80.6%

Pro

20.4%

Pro

Recreation

Training

The Hot Spot franchise provides comprehensive training programs to ensure franchisees are well-prepared to operate their business. Below is a breakdown of the training programs provided by the Franchisor:

  1. Initial Management Training Program: Franchisees and their principals must attend and satisfactorily complete this program within 30 days prior to opening. It is held at the Franchisor’s headquarters or other designated locations and includes virtual components. The program covers topics such as the use of manuals, kiln operations, pre-opening procedures, marketing, management training, and more. No charge is made for up to three individuals. However, all travel-related expenses are borne by the Franchisee.
  2. Opening Assistance: Upon opening, a trained representative provides on-site training and supervision for up to two days (six hours per day) at no cost. This support helps the franchisee launch operations smoothly.
  3. Additional Training Programs: The Franchisor may offer mandatory or optional additional training, including participation in national meetings or conventions. If deemed necessary, franchisees or their principals must attend up to five days of training per year. A reasonable fee may be charged for these sessions, and the franchisee is responsible for all incidental expenses.

Territory Protection

The Hot Spot franchise provides its franchisees with exclusive territorial protection under the Franchise Agreement. Each franchisee is granted a defined territory, which is typically based on geographic and demographic factors like population and income levels.

During the term of the agreement, and provided the franchisee is not in default, the Franchisor agrees not to open or allow any other The Hot Spot studios to open within that territory.

Additionally, the franchisee is guaranteed that The Hot Spot will not sell its products or services within the assigned territory through other studios or alternative distribution channels.

Number of units

2024
Franchised units

0

0

0

Company-owned units

3

3

4

Total units

3

3

4

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